Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Fonterra spends $42 mln on new Chinese dairy farm

Fonterra spends $42 mln on new Chinese dairy farm

by Paul McBeth

Oct. 20 (BusinessDesk) – Fonterra Cooperative Group will spend $42 million on a new dairy farm in China as it looks to build its presence in the world’s most populous nation.

The world’s biggest dairy exporter and the Yutian County Government formally agreed to develop a new farm in the Hebei province, about 100 kms away from Fonterra’s pilot farm in Tangshan.

Fonterra has entered into a long term lease to use the land, much the way that China-resident New Zealand business leader David Mahon suggested this week could work in this country to assuage fears about foreign ownership of local farmland.

The company’s second Chinese farm is expected to begin milking in November next year, and will house 3,000 cows imported from New Zealand while employing about 100 locals.

“China is a very important market for Fonterra and we’re committed to developing and investing in the local dairy industry over the long term,” chief executive Andrew Ferrier said in a statement.

“Today’s agreement further strengthens Fonterra’s capacity to deliver a secure and sustainable supply of fresh dairy products for Chinese customers and consumers.”

Fonterra stepped back from its investment in China after an earlier Chinese partner was caught up in melamine scandal in 2008 that left several infants dead after San-Lu’s farmers added melamine to the milk to lift its protein.

The farm is expected to produce about as much milk as the Tangshan pilot, which has doubled its muster to 6,000 cows and is producing about 25 million litres for local consumption.

Milk from the new farm will be audited under Fonterra’s standards of excellence.

(BusinessDesk) 16:29:10

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news